Fri 20 Apr 2018 08:56

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed last night up $0.40 to $73.78, and WTI closed at $68.29, down $0.18. What has the week brought us? Another beaut of a week if you're a bull (any bears out there? no? just my colleague? OK then). Since April fool's day, Brent is up 9%. Impressive. I read that crude stocks have finally reached the 5-year average. Hang on a minute, the whole reason the oil market collapsed when news of the "glut" came about was because there was so much oil compared to previous years. So, if oil stocks have finally reached levels compared to the 5-year average, then how is it a good thing? Let me put it this way: Say 5 years ago I weighed 80kg, 5 years later I weigh 160kg, but during the last year I have managed to lose 2kg, ss that 2kg something to be happy about? No, I'm still as fat as an orca and I need one of those stair lifts just so I can go to bed. Like I said yesterday, none of it really matters. All that matters is that OPEC are high-fiving each other about reaching this milestone and the bulls concede, roll over, have their tummy tickled and buy as much as they can accordingly. I will acknowledge (if Goldman's are to be believed that is) that demand does look rather good. It also looks like scrubbers are not going to be as successful an option as some had hoped, with fewer than 1,100 ships likely to have them installed by 2020.

Fuel Oil Market (April 19)

The front crack opened at -13.25, weakening to -13.55 across the day. The Cal 19 was valued at -14.90. Asia's front-month high-sulphur fuel oil crack widened its discount to Brent crude on Thursday, falling to the widest discount since August 2016 amid the rise in crude prices.

The May 180 cSt fuel oil crack to Brent settled at minus $9.64 a barrel on Thursday, down 72 cents a barrel from the previous session.

Sing weekly onshore fuel oil inventories fell 9%, or 1.751 million barrels, to a more-than-10-month low of 17.941 million barrels in the week ended April 18.

China's fuel oil output in March fell 10 percent from the same time last year to 1.98 million tonnes, according to the National Statistical Bureau on Thursday.

Economic Data and Events

* 6pm: Baker Hughes rig count

* ~630m: ICE wkly commitments of traders report for Brent, gasoil

* Commodity Futures Trading Commission weekly scheduled report on futures and options positions

* OPEC's Joint Ministerial Monitoring Committee meets in Jeddah, Saudi Arabia

* Russia 10-day Urals program for May

Singapore 380 cSt

May18 -391.25 / 393.25

Jun18 -390.25 / 392.25

Jul18 - 388.75 / 390.75

Aug18 - 387.25 / 389.25

Sep18 - 385.25 / 387.25

Oct18 - 383.25 / 385.25

Q3-18 - 387.25 / 389.25

Q4-18 - 380.75 / 382.75

Q1-19 -372.00 / 374.50

Q2-19 - 364.75 / 367.25

CAL19 - 345.50 / 348.50

CAL20 - 280.50 / 285.50

Singapore 180 cSt

May18 - 402.25 / 404.25

Jun18 - 401.25 / 403.25

Jul18 - 399.75 / 401.75

Aug18 - 398.25 / 400.25

Sep18 - 396.25 / 398.25

Oct18 - 394.25 / 396.25

Q3-18 - 398.25 / 400.25

Q4-18 - 391.75 / 393.75

Q1-19 - 383.25 / 385.75

Q2-19 - 377.25 / 379.75

CAL19 - 360.50 / 363.50

CAL20 - 304.50 / 309.50

Rotterdam Barges

May18 378.25 / 380.25

Jun18 377.75 / 379.75

Jul18 376.25 / 378.25

Aug18 374.25 / 376.25

Sep18 371.50 / 373.50

Oct18 - 368.25 / 370.25

Q3-18 374.00 / 376.00

Q4-18 364.50 / 366.50

Q1-19 3356.25 / 358.75

Q2-18 347.25 / 349.75

CAL19 326.00 / 329.00

CAL20 262.00 / 267.00


The Buffalo 404 barge, owned by Buffalo Marine Service Inc., performing a bunker delivery. TFG Marine installs first ISO-certified mass flow meter on US Gulf bunker barge  

Installation marks expansion of company's digitalisation programme across global fleet.

Sogestran's fuel supply vessel, the Anatife, at the port of Belle-Île-en-Mer. Sogestran's HVO-powered tanker achieves 78% CO2 reduction on French island fuel runs  

Small tanker Anatife saves fuel while supplying Belle-Île and Île d'Yeu.

Crowley 1,400 TEU LNG-powered containership, Tiscapa. Crowley deploys LNG-powered boxship Tiscapa for Caribbean and Central American routes  

Vessel is the third in company's Avance Class fleet to enter service.

The inland LNG bunker vessel LNG London. LNG London completes 1,000 bunkering operations in Rotterdam and Antwerp  

Delivery vessel reaches milestone after five years of operations across ARA hub.

The M.V. COSCO Shipping Yangpu, China's first methanol dual-fuel containership. COSCO vessel completes maiden green methanol bunkering at Yangpu  

China's first methanol dual-fuel containership refuels with green methanol derived from urban waste.

Carsten Ladekjær, CEO of Glander International Bunkering. Glander International Bunkering reports stable performance amid regulatory changes  

Bunker trader achieves $3bn turnover and $22m pre-tax earnings for fiscal 2024-25.

Map of the Mediterranean Sea ULSFO demand surges in Med as ECA compliance drives fuel shift  

KPI OceanConnect reports accelerating ULSFO uptake across the region.

The Zale performing a bunker delivery. Monjasa reports Singapore as top bunker supply port with over 1 MMT delivered  

Supplier says world's largest bunkering hub became its biggest supply location in 2024.

Steel cutting ceremony for the 7,999 DWT chemical bunker tanker Lucia Cosulich at Taizhou Maple Leaf Shipbuilding Co., Ltd. in China. Fratelli Cosulich begins construction of second methanol-ready bunker tanker  

Italian firm starts steel cutting for 7,999 DWT chemical bunker vessel.

Petrobras logo. Petrobras introduces volume-based price discounts at Santos  

Brazilian oil company offers progressive discounts for bunker deliveries exceeding 1,500 tonnes.


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